Canada's first oil sands unit-train to run in November

|By:, SA News Editor

Western Canada's first crude-by-rail unit train terminal is set to start transporting 50K bbl/day of oil sands crude to the U.S. market next month, the CEO of operating company Canexus says.

The terminal in Bruderheim, Alberta, which will be expanded to 100K bbl/day by late next year as a second supply pipeline is connected, initially will load only dilbit oil - heavy bitumen crude mixed with light condensate.

For now, Canada's oil sands area is served only by manifest trains hauling smaller loads - not cost-effective - but ~550K bbl/day of unit-train crude-by-rail projects are due to start up in western Canada by year-end 2014.

MEG Energy (MEGEF.PK) says the terminal will allow it to ship all of its 30K-35K bbl/day of production by rail to its main market in the U.S. midwest; Cenovus Energy (CVE) also is signed up as a shipper.